🔥 China Eyes Yuan-Pegged Stablecoin 🔥
According to Reuters, China is exploring the launch of a yuan-pegged stablecoin designed to enhance global trade and streamline cross-border payments. The proposal is expected to reach the State Council in August 2025 for review and possible approval, marking a major step in Beijing’s strategy to expand the yuan’s role in international finance.
While this move signals progress, regulators remain cautious toward privately issued stablecoins, tightening restrictions on domestic promotions and issuing new warnings against scams linked to private issuers. This highlights China’s preference for state-backed innovation while maintaining strict oversight of decentralized alternatives.
Stablecoins have quickly become a strategic financial tool worldwide, empowering countries to extend the influence of their currencies. The U.S. has already taken the lead in this space, but with this development, China is positioning itself to compete aggressively, ensuring it won’t remain on the sidelines of the stablecoin race.
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